Entry Level Accounting Jobs | Titles, Duties & Salary Range

Salary Expectations for New Accounting Graduates

As a new graduate with a four-year degree in accounting, you can expect a competitive starting salary in the field. According to data from Zip Recruiter, the national average salary for an entry-level junior accountant in the United States is $55,000 per year. However, salaries can vary significantly depending on the location and industry.

For example, in the New York City metropolitan area, the average starting salary for an entry-level accountant is around $63,000 per year. This higher salary range is reflective of the increased cost of living and the competitive nature of the job market in major financial hubs. Additionally, some industries, such as software companies, tend to offer higher starting salaries for entry-level accounting positions compared to other sectors like manufacturing or services.

Regardless of the specific location or industry, a starting salary of $55,000 to $63,000 for a new accounting graduate is a very respectable figure and a strong indicator of the value that the accounting profession can provide in terms of financial stability and growth opportunities.

The Two Main Paths in Accounting: Public vs. Private

As a new accounting graduate, you will have the opportunity to choose between two primary career paths: public accounting or private accounting. Each of these paths offers unique job responsibilities, career trajectories, and professional development opportunities.

Public Accounting

If you choose to work in public accounting, you will typically be employed by a large, national accounting firm, such as the "Big Four" (Deloitte, PricewaterhouseCoopers, KPMG, and Ernst & Young) or other regional or boutique firms. Within public accounting, you will generally specialize in either audit or tax work.

Audit Associate

As an audit associate, your primary responsibilities will include:

• Assisting with audit reviews, compilations, and other accounting services

• Working within a team to perform audits for clients

• Preparing work papers to document the audit process and findings

• Resolving audit issues by obtaining evidence and making inquiries with clients

• Understanding the client's accounting systems and applying concepts of materiality and audit risk

To be eligible for an audit associate position, you will typically need a bachelor's or master's degree in accounting, a minimum GPA of 3.0, and the ability to become a certified public accountant (CPA) upon starting the job. The CPA license is crucial for advancement in the audit field, as it demonstrates your technical expertise and commitment to the profession.

Tax Associate

If you choose to specialize in tax, your responsibilities as a tax associate will include:

• Preparing tax returns for individuals, partnerships, and corporations

• Conducting tax research to stay up-to-date on the latest tax laws and regulations

• Interacting and communicating directly with clients to gather the necessary information for tax preparation

• Working closely with more experienced staff, such as seniors, supervisors, and managers, to ensure the accuracy and completeness of tax filings

• Becoming familiar with the firm's policies and procedures regarding tax assignments

Similar to the audit associate role, the tax associate position typically requires a bachelor's or master's degree in accounting, a minimum GPA of 3.0, and the ability to become a CPA or an Enrolled Agent (EA) with the Internal Revenue Service (IRS).

Private Accounting

In contrast to public accounting, private accounting involves working directly for a company, rather than a public accounting firm. Within private accounting, you can choose to specialize in either the revenue/billing side of the business or the expenditure/accounts payable side.

Billing Analyst

As a billing analyst in private accounting, your primary responsibilities may include:

• Preparing and distributing bi-weekly invoices to clients

• Researching and resolving billing inquiries from clients

• Assisting with client account reconciliation to ensure accurate and timely payments

• Working closely with the sales and operations teams to ensure billing accuracy

• Reviewing and securing the status of unbilled balances

• Responding to inquiries from both sales and clients in a timely manner

• Assisting with quarterly audits as needed

Accounts Payable Specialist

If you choose to work on the expenditure side of private accounting, your role as an accounts payable specialist may involve:

• Processing invoices and preparing checks for vendor payments

• Reconciling purchase orders to ensure that expenses are properly authorized

• Receiving and verifying employee expense reports for reimbursement

• Performing monthly account reconciliations to ensure the accuracy of accounts payable records

• Auditing and reviewing unprocessed credit card bills

• Maintaining financial records by filing relevant documents

• Reviewing, coding, and processing invoices to ensure accurate GL (general ledger) coding

Unlike the public accounting roles, the private accounting positions typically do not require a CPA license, although it can be beneficial for career advancement. The focus is more on developing a strong understanding of the company's accounting systems, processes, and internal controls.

Choosing the Right Path for You

When deciding between public accounting and private accounting, it's important to consider your personal preferences, career goals, and long-term aspirations. Public accounting offers the opportunity to work with a diverse range of clients, gain exposure to various industries, and potentially earn the prestigious CPA certification. However, the work can be more demanding, with longer hours and a more structured career progression.

Private accounting, on the other hand, provides the chance to develop a deeper understanding of a specific company's operations and financial reporting. The work-life balance may be more favorable, and the career path can be more flexible, with opportunities to move into various roles within the organization. However, the scope of experience may be more limited compared to public accounting.

Ultimately, the choice between public and private accounting will depend on your individual priorities and the type of work environment that aligns best with your professional goals. It's worth exploring both options to determine which path is the best fit for your skills, interests, and long-term career aspirations.

Preparing for Success in the Accounting Field

Regardless of the specific path you choose, there are several steps you can take to prepare for a successful career in accounting:

• Maintain a Strong Academic Record: Strive for a high GPA, as many employers in the accounting field place a strong emphasis on academic performance, particularly for entry-level positions.

• Obtain the CPA Certification: If your goal is to work in audit or tax, the CPA license is a crucial credential that will open doors and demonstrate your technical expertise. Start planning for the CPA exam early in your academic or professional journey.

• Develop Relevant Skills: Hone your analytical, problem-solving, and communication skills, as these are highly valued in the accounting profession. Consider taking courses or participating in extracurricular activities that can help you build these competencies.

• Gain Practical Experience: Seek out internships, co-op programs, or part-time jobs in accounting or finance to gain hands-on experience and build your professional network.

• Stay Up-to-Date with Industry Trends: Follow industry publications, attend professional events, and engage with online communities to stay informed about the latest developments in accounting and finance.

By taking these proactive steps, you can position yourself for a successful and rewarding career in the dynamic and ever-evolving field of accounting.

Conclusion

The entry-level accounting job market offers a range of exciting opportunities for new graduates, with competitive salaries and the potential for long-term career growth. Whether you choose to pursue a path in public accounting or private accounting, the skills and knowledge you develop will serve as a strong foundation for your professional journey.

Remember, the accounting field is constantly evolving, and staying adaptable, curious, and committed to continuous learning will be key to your success. By understanding the different job titles, responsibilities, and salary expectations, you can make an informed decision about the path that aligns best with your personal and professional goals.

For more resources and guidance on navigating the accounting job market, be sure to check out the Controller Academy and explore the wide range of courses and materials available to help you excel in your accounting career.